Sugar Pine Inc.collects 30% of its sales in the month of sale and the other 70% in the following month.The following shows budgeted sales for January through March.
$\begin{array}{ll}
\text { January } & \$ 250,000 \
\text { February } & \$ 325,000 \
\text { March } & \$ 387,500
\end{array}$
What is the amount of cash receipts budgeted for February?
A)$97,500
B)$271,250
C)$272,500
D)$302,500
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

In February, Sugar Pine Inc. will collect 30% of February sales ($325,000 * 0.30 = $97,500) and 70% of January sales ($250,000 * 0.70 = $175,000). The total cash receipts for February are $97,500 + $175,000 = $272,500.

Sugar Pine Inc January $250,000 February $325,000 March $387,500\begin{array}{ll}\text { January } & \$ 250,000 \\\text { February } & \$ 325,000 \\\text { March } & \$ 387,500\end{array} January February March ​$250,000$325,000$387,500​

Sugar Pine Inc $\begin{array}{ll}\text { January } & \$ 250,000 \\\text { February } & \$ 325,000 \\\text { March } & \$ 387,500\end{array}$